About 80% of the top business leaders in Britain expect to see business increase over 2014, but there are still many concerns about household budgets preventing sales, overall productivity, and the general election affecting political risk. Ipsos ran their annual survey that includes the captains of British industry to ask how they feel about the upcoming business year.
The survey included 105 chief executives, chairmen, and senior directors and discovered that 93% of them felt that this year the economy will finally start to turn around and improve. However, over half of those questioned felt that it was going to take at least a year if not longer for the growth to be noticeable.
Commercial director for J Sainsbury, Mike Coupe, stated that the economy is finally started to make positive moves in the right direction but until the growth prompts wages that can keep up with inflation then people are still not going to spend freely.
Chairman of Lloyds Banking Group, Sir Win Bischoff stated that his main concern is how business can get back to their previous productivity so that they can start to grow. Output at the start of 2014 is just two percent what it was before the economic crisis, but productivity is still down according to the Office for National Statistics.
The top business leaders felt that the policies of the coalition were the most likely to bring about a better economy. In order to improve the economy the business leaders mentioned a handful of thing that they would like the Government to address including investment in infrastructure, investment in skills and education, and further reductions in red tape and taxation. However, political threat is a real concern for businesses that are worried about Labour and coalition tensions.